Being the two different branches of Law; the Intellectual Property and Competition Law are closely related with each other thanks to the developing world-wide markets. Both serving to amelioration of the global economy and innovation, a possible conflict might occur simply because of their nature. While Intellectual Property rights bestow the right holder a "monopoly" over his right, Competition rules intervene to the right holder's monopoly in order to protect and balance the competition market. The important element is regulating and drawing the line to restrict IPRs. To maintain the free-market and free-trade in the European Union, this balance between the Intellectual Property Rights and Competition Rules is certainly crucial. In cases of IPRs being scrutinized under EU Competition Rules, the Exhaustion of Rights principle came out as a protection measure. Therefore this research examines the interactions of Competition and Intellectual Property Law and the scope of Competition Policy to be applied on the IPRs along with the case-law in the European Union and the Exhaustion of Rights principle.